Numismatic tax benefit

Aight, I'm a newbie here and newbie to coins. Just transferred an old 401K into silver coins thru one of the big companies. The rep I talked to mentioned that numismatic coins are "nondisclosable" to the IRS? Whereas bullion is not. I'm looking for the guide to idiot guide explanation for this. Does this mean that if i buy 10k worth of coins and sell it for 20k in 10 years I dont have to report or pay capital gains or anything else on the profit? If I pass 100 coins to my kids do they have to report it or pay capital gains when they sell them? I'm not trying to break the law but if there is any tax benefit to be had I'd like to take it. Been searching for days and got some info but I need an idiot guide break down on this. Thanks.

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Legally, all capital gains are to be reported to the IRS when you file your tax return, whether previously reported by the buyer.
I don't believe that very many of those gains actually make it onto tax returns.

Aight, I'm a newbie here and newbie to coins. Just transferred an old 401K into silver coins thru one of the big companies. The rep I talked to mentioned that numismatic coins are "nondisclosable" to the IRS? Whereas bullion is not. I'm looking for the guide to idiot guide explanation for this. Does this mean that if i buy 10k worth of coins and sell it for 20k in 10 years I dont have to report or pay capital gains or anything else on the profit? If I pass 100 coins to my kids do they have to report it or pay capital gains when they sell them? I'm not trying to break the law but if there is any tax benefit to be had I'd like to take it. Been searching for days and got some info but I need an idiot guide break down on this. Thanks.

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In simple terms, what he's telling you is that bullion meets the qualifications for an IRA account and numismatic silver coins, or gold numismatic coins, do not. That said you must also understand that ASEs and the like are not numismatic coins - they are classified as bullion.

So, any buying and subsequent selling of numismatic coins must be reported to the IRS every year when you file your taxes. And taxes on gains must be paid that year. But they can also be offset by looses.

Bottom line, numismatic coins are treated just like anything else when it comes to taxes. There are no exemptions or exceptions on them.

Well..... I'll put it like this. I keep quite a bit of PM's in several safe deposit boxes and a small amount in my home safe. I also have a thing for collectible guitars and ran across a deal I couldn't pass up four years ago. I simply carried four rolls of ASE's (American Silver Eagles) from my safe down to my dealer. He peeled off fourteen one hundred dollar bills.... No fuss... No muss.... No reporting..... I went and purchased my guitar. Now, today that would be closer to $1100.00.

Thing is about precious metals.... It is such a gamble. I say its a good place to store wealth but never a good place to create wealth. And for me it isn't an investment vehicle. My heirs will get the bulk of my PM hoarding. I just like the stuff.

Good info so far! Like a said I'm a newbie at this. The way the rep said it made it sound like government wording straight from CFR or the IRS. "Nondisclosable". Like hey... I can't legally tell you anything but that, but it's an obvious advantage to stocks bonds or other. I'm just trying to figure out what it means.

I went thru Lear capital. It was an old 401k just sitting and I saw the TV commercial. Now I got a few hundred 1.5 oz silver snowy owls held in a vault that I can't get till I'm 59. May hate myself for it, might be a millionaire tomorrow but it is what it is.

Let me ask this. From the above list posted by clawcoins, if I buy 2 kilos of gold bars and hold them am I required to report that I have them? The price I paid for them? Or anything? What's the difference if I bought 1 ounce of gold bar and 2 kilos of gold bar according to that list?

Capital Gains is how much profit (or loss) you got of when you Sold your asset to when you Bought your asset minus direct expenses.

So by holding/storing physical items, you'll be able to deduct the monthly/annual costs of storage, fees for handling, heavy buy/sell commissions, etc etc from any potential profit you may receive down the road.

Tax laws have changed and I don't know them in detail for this coming tax season and even then so, don't know the tax laws / retirement acct laws for PM based items.

OP said coins, twice, not bullion. As was posted earlier the qualifications for bullion are pretty strict.

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OP stated Snowy Owls. He also stated the account was with Lear, who famously offer "Precious Metal IRA's".

The IRS mandates what is allowed and what isn't allowed in a precious metals IRA*. So I assume the OP has opened a Precious Metal IRA with Lear, and his withdrawals will be taxed as ordinary income, as all conventional IRA's are, regardless of what is held in them.

Investment in Collectibles
If your traditional IRA invests in collectibles, the amount invested is considered distributed to you in the year invested. You may have to pay the 10% additional tax on early distributions discussed in Pub. 590-B.

Any amounts that were considered to be distributed when the investment in the collectible was made, and which were included in your income at that time, aren’t included in your income when the collectible is actually distributed from your IRA.

Collectibles.

These include:

Artworks,

Rugs,

Antiques,

Metals,

Gems,

Stamps,

Coins,

Alcoholic beverages, and

Certain other tangible personal property.]

Exception.

Your IRA can invest in one, one-half, one-quarter, or one-tenth ounce U.S. gold coins, or one-ounce silver coins minted by the Treasury Department. It can also invest in certain platinum coins and certain gold, silver, palladium, and platinum bullion.